Unilever has decided to transfer the ownership of its cosmetics operations Russia and Belarus to local manufacturer, Arnest. The value of the sale has not yet been disclosed.
In both the Russian Federation and Belarus, some businesses are suffering because of the war and the sanctions imposed by many countries. The situation in the cosmetics market has deteriorated dramatically, leading many organisations to change their strategies in the region.
According to Reuters, Unilever has sold its operations in Russia and Belarus to the Arnest Group, a regional producer. All of Unilever’s operations, as well as its four Russian facilities, have been sold. The Arnest Group produces cosmetics, household goods & fragrances and, in 2022, it paid $530 million to acquire the beverage packaging division of Ball Corp. and the Russian assets of Oriflame, a Swedish cosmetics company.
According to the report, Unilever is expected to release its third-quarter financial results on October 24.
The RBC Business Daily revealed last month that Unilever had received permission from the Russian government to sell assets valued between $359.5 and $410.9 million, or 35 – 40 billion Roubles.
It is not only the cosmetics industry that is undergoing profound changes due to the worrying market situation in Russia and Belarus; in response to years of underperformance at Unilever, Hein Schumacher, in his first year as CEO, has announced intentions to exit the ice cream sector, undertake layoffs that might impact up to 7,500 workers, and focus on 30 core brands. Hein Schumacher, CEO of Unilever, said, “This work has been very complex. It has involved separating IT platforms and supply chains, as well as migrating brands to Cyrillic.”
